When income increases from $20,000 to $30,000 the quantity of inter-city bus trips taken per year decreases from 10 to 8. Hence
A) inter-city bus trips are a normal good.
B) the income elasticity of demand for inter-city bus trips is -1.8.
C) the income elasticity of demand for inter-city bus trips is -0.56.
D) Both answers A and B are correct.
E) Both answers A and C are correct.
C
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The CPI for all goods and services excluding food and energy is called a. a hedonic price index. b. the CPI basis. c. the core CPI
d. the producer price index.
Informing people of social norms is likely to get:
A. more people to act that way, which is always negative. B. more people to act that way, which can be a problem if policymakers are trying to change typical behavior. C. more people to act that way, which is always positive. D. less people to act that way, because people like to be unique.
Quantitative easing occurs when a nation’s central bank uses monetary policy to:
Economic cost is always less than accounting cost.
Answer the following statement true (T) or false (F)